Affiliate Marketing - The Basics
Affiliate Marketing is a
great way to increase the revenue
from your website. While it is generally quick and easy to set up an
an affiliate, there are many things that you should know before you get
started. Our goal at Affiliate Marketer Guide is to
provide you the
tools you need to get the most out of your website.
What is Affiliate Marketing
Affiliate marketing is the selling and sharing of
revenues between advertisers, merchants
and publishers online. It is a
method for promoting business on the web by connecting buyers and
sellers and rewarding facilitators that referred the connection.
Who Are the Affiliate Marketers
Publishers and Salespeople are referred to as
affiliates. They sell their leads to the advertisers and merchants who
then regarded as the affiliate
There are several technological solutions for
advertisers, merchants and companies that would want to adopt affiliate
marketing as an added strategy to their business. Common types of
solutions include third
party affiliate net works, hosted services, stand alone
software, and shopping
carts with affiliate features.
Benefits an Affiliate Marketer
Applying affiliate marketing strategy will
generate potential for automating most of your advertising, like
generating linkages, accepting applications, reporting and the tracking
Compensation of an Affiliate Marketer
Payment is based on performances, the same as a
sales person receives commission for a sale generated. An affiliate
marketer is paid in terms of clicks (pay per click),
registrations (pay per
lead), sales (pay
per sales) or its
Compensation schemes are as varied as the
merchants that have adopted the strategy. Depending on the company, the
item that is being sold, and the value of the lead, commissions
anywhere from 1% to 20%
Because of the online traffic, many merchants
have built programs known as affiliate networks. This marketing
technique has helped many businesses to succeed and grow.
What you do
- Sign up to sell merchants products.
- You advertise
products to attract
visitors to your site.
- You generate
referrals and sales to
your client company
- The company
pays you for (pay per
click), registrations (pay per lead), sales (pay per sales) or its
What you do not need to do
- Since you are simply advertising or helping to
merchant's product or publishers materials, this is a business that you
do not have to come out with a product of your own.
- Aside from your computer, phone lines
and DSL routes, you do not need anything else.
- No putting up of capital, no overhead
costs, no commuting needed.
- No particular area that is being
franchised. No geographic limitations.
- You have a free reign on your choice
of products to endorse.
- No inventories, shipping, freight,
sales processing, the merchant does all those functions.
- No renting of office spaces. Your
office is where you are
Brief History of the Marketing
Affiliate marketing started in 1996 with
Amazon.com when it launched its affiliates program. Today the company
has 450,000 sites in its network.
The basic idea is for small website
register with Amazon. The website owner then displays links,
banners, and product descriptions on his website. When visitors to his
and buys a book, the website owner is paid a commission on the
generated sale. Simple.
As Amazon gained success other companies
followed. Soon after, spamming caused a temparary negative reaction to
affiliate marketing programs. It has since then matured where merchants
have pushed for refinements in their program where affiliates were
prohibited from spamming.
Today, affiliate marketing is a good marketing
tool that is being adopted by companies and being enjoyed by
affiliates. It is now common to see big businesses adopting the
strategy in growing their respective businesses.
Adding affiliate products to your site will not
increase the earning potential of your web site, but also increase its
your visitors. By
products that you would consider using, you provide a valuable
for you site visitor.